The Deputy Governor of the Bank of Japan (BOJ) stated on June 8 that the global economy still faces significant uncertainty, despite the signing of an agreement to end the war in Iran.
Speaking at an online seminar, he said the prolonged conflict has left deep scars on supply chains, energy prices, and investor confidence. While the peace deal is seen as a positive signal, the economic recovery will require time and close policy coordination.
This assessment comes as major central banks worldwide weigh tightening monetary policy, while labor markets and inflation in many countries have yet to stabilize. The BOJ, with its long-standing ultra-loose monetary policy, faces pressure to make flexible adjustments to adapt to the new situation.
Analysts believe that although the Iran deal may help lower crude oil prices and reduce inflation pressure in the short term, other geopolitical risks and uneven recovery across regions could still constrain global growth through 2026.
